Around 600 production workers at John Deere factories in East Moline, Illinois, and Davenport and Dubuque, Iowa, will be laid off effective Aug. 30. The layoffs are a result of reduced demand for products from these factories.
The company’s decision follows its recent announcement to move some operations from an Iowa facility to Mexico by the end of 2026. Specifically, John Deere will shift the manufacturing of skid steer loaders and compact track loaders from its Dubuque facility to Mexico.
John Deere cites efforts to evolve its business model, address rising manufacturing costs, and improve operational efficiencies as reasons behind these changes. Earlier this year, the company also implemented several other layoffs, affecting employees in different locations.
Farmers’ reduced equipment purchases contribute to the challenges faced by John Deere. In May, the company lowered its full-year profit forecast due to declining crop prices. The U.S. Department of Agriculture predicts a 25.5% decrease in net farm income for 2024, with lower direct government payments and increased production costs adding to the strain on farmers.
Source: The Hill
